A seedrs and crowdcube exit

[UncleEbenezer]

Reports flying around that EDF has agreed a deal to buy Pod Point - the electric car charging company that's raised funding through both seedrs and crowdcube. Some conflicting information regarding price, but it looks like 23p/share, with an additional 1.1p/share subject to no disasters happening for two years.

All my information comes indirectly (crowdcube have sent information to their investors; seedrs haven't; I'm an investor through seedrs). If true it represents a decent return on the 8.53p (6p after EIS relief) I paid five years ago, but discussion on seedrs suggests at least some investors are unhappy with that price. It's also below the 27p paid by Legal&General, although those may have been a different share class.

[1] https://www.businessgreen.com/news/4010 ... -point-bid
[2] https://inews.co.uk/news/business/edf-e ... nt-1393242

[BusyBumbleBee]

Hope you have a lot, UndleE

The Draper Esprit VCTs also have shareholdings by the way - and I also have a Pod Point installed here - it's OK but costly if it goes wrong and they never respond to emails.

[onslow]

Not a bad return compared to most offers on Crowdcube and Seedrs.

(I still cant believe there isnt stronger regulation about some of the offerings - however at the end of the day people need to take some responsibility, and any stronger regulation will likely make it harder for all investors not just the ones who deserve(?) to lose their money)

I invested in Oppo and Crua. Oppo bought out, Crua going from strength to strength and another raising shortly I believe.

[UncleEbenezer]

Seedrs have confirmed the deal today. Terms are as I reported, modulo rounding errors.

Seedrs also mention that "A" shares were introduced at the time of the Draper Esprit investment. Not stated but more-or-less implied is that those shares are also what L&G bought on preferential terms, and that those may be getting a better price, likely the 27p L&G paid for their stake.

There's some disquiet about these numbers among seedrs investors, not least those who bought in the secondary market at seedrs' set price of 27p. I've crunched the numbers, and we have:

Seedrs Indicative Valuation £95.3m (book price?)
Reported sale value £110m.

So that's a 15% premium. Ordinary shares should presumably be getting a lift of at least 15% from that, right?

Sale price for shares: about 24p. Seedrs "market" price 27p. A loss of 11% for recent investors on the seedrs secondary market.

In other words, a realisation at both 15% premium and 11% discount to an implied book value! And that's discounting any gearing due to the existence of preferred shares!

[UncleEbenezer]

Money from that is now in. With a small withholding that should be payable in a couple of years subject to no nasties[1] arising from Pod Point.

The payment is in the ballpark of a VCT special dividend. OK, a big special - bigger than I've had since 2017, which was the last year of the VCT gravy train at full steam. But not quite the biggest, either in absolute terms or relative to investment (counting the seedrs overall pot as equivalent to a VCT).

But comparing the crowdfunding portfolio with a VCT, that's one juicy special but no flow of regular dividends. Hmmm ....

[1] What I mean is that I don't know the detail, but I understand it's tied to the risk of liabilities rather than general economic performance, so covid is not relevant.